Real Estate Exam 1 Review

What happens to the price of an item when an item is in high demand but the supply is low?

• Price increases

• Price decreases

• Price remains the same

• The item becomes free

Which of the following is an improvement to a parcel of land? (It is NOT sidewalks/streets)

• Existing landscape

• Sidewalks and streets

• Mineral rights

• Water rights

What do you get when land increases over a period of time?

• Equity

• Liability

• Principal

• Asset

What conveys or gives interest and is tangible evidence of one's ownership of a piece of real property?

• Deed

• Will

• Title

• Conveyance

What is the difference between the value of the property and the amount owed on the mortgage?

• Equity

• Liability

• Principal

• Asset

How many years are the most popular fixed-rate home loans amortized over?

• 15 or 30 years

• 5 or 10 years

• 25 years

• 40 or 50 years

What are the TWO advantages of homeownership? (pick two)

• Accumulation of equity

• Tax benefits

• Repair maintenance

• Mobility opportunity

• Market recession

Who acts as an intermediary in locating a source of funds for a party interested in a home?

• Mortgage broker

• Appraiser

Which is NOT a tax deduction directly associated with the ownership of real estate?

• Cost of Decorating

• Mortgage Interest

• Cost of selling a home

• Property taxes

Limited resources and unlimited wants describe:

• Scarcity

• Supply

• Location

• Investment